Madam Speaker, I will be splitting my time with the extraordinarily distinguished member for Bonavista—Gander—Grand Falls—Windsor.
Madam Speaker, I am pleased to speak to this issue and I congratulate my colleague from the NDP for bringing it forward for discussion today. Retirement incomes, the life of our seniors in this country, is a huge issue that faces many Canadians. I think all Canadians are feeling this, whether it is them personally, whether it is their family, or whether it is their neighbours. This is a huge issue that affects many Canadians in the country today. I think all MPs have heard the stories. I have certainly heard from seniors in my riding, many of whom thought they might okay in their retirement years and all of a sudden have to relook at their income, and in some cases, have to go back to work years after they retired, because they do not have the resources they need.
There are number of negatives issues that affect all Canadians, or a large percentage of Canadians. The punitive tax on income trusts that was brought in, in sort of a blitzkrieg motion by the government a couple of years ago, hurt Canadians. I very well recall one of my constituents calling me up and saying, “Mike, look, I didn't invest in income trusts. I'm not a big investor. I never looked for very much of a return. I was always very prudent. However, when at that time the opposition leader, now the Prime Minister, said he was not going to tax them, I thought, okay, nobody can go back on that”. So he invested, and he lost $16,000. That may not sound like a lot to some people, but it is a lot of money to a lot of people in this country.
The other thing, of course, that has hurt a lot of Canadians is the falling stock markets. A lot of people who thought they were fine are now being hurt very severely by the falling stock markets. I have heard people say, “Well, they should not have invested in the stock market. Maybe they should have invested in a more secure mechanism”. However, people make decisions in a lot of cases based on advice of others, and some people had been told, “Look, the market always goes up. Why don't you invest?”
I recall not that many years ago that people were rushing away from defined benefit pension plans into defined contribution pension plans, thinking this was the way to go. All of a sudden the market is bringing in 15% a year and people think, “I'll get into that”. A lot of those people have been hurt very badly. That has hurt an awful lot of Canadians. That has hurt a lot of citizens in this country who thought their retirement years were going to be okay.
It is a very sad story, because if people my age or younger all of a sudden find themselves with less income than they thought, at least they have the option of perhaps going back to work, or they at least have more options in terms of replacing income. If it happens to a senior in this country, the options are very limited. So we have to do something as a country to protect those people.
I want to focus my remarks, though, specifically on the poorest Canadians, Canadians who are living in poverty.
There has been some good news over the last number of years to offset the bad news—the solid work by previous governments, particularly the Chrétien-Martin government of the last decade, which made tough decisions. People look back and say, “Well, that was easy”. It was not easy. It was a tough decision to rescue the CPP and to make it financially solvent for years to come. That was done in a forward-thinking process just over a decade ago. It was the right thing to do.
The other thing is that we have increased seniors' benefits in this country and it has made a difference in Canada. OAS and GIS are very important. We have shown in Canada that we do value senior citizens.
As a matter of fact, the rate of poverty has gone down over the last number of years among seniors. If we look at a report from the Caledon Institute, entitled “The federal role in poverty reduction”, which was presented to the human resources committee a couple of months ago as part of our study, it stated:
Canada has made substantial strides in reducing poverty among the elderly, the rate plummeting from 29.0 percent in 1976 to 5.4 percent in 2006.... Canada ranks third lowest among 23 industrialized nations, bested only by Finland (5.2 percent) and Sweden (2.7 percent).
This huge reduction in poverty is due largely to improvements in public pension programs (Old Age Security, the Guaranteed Income Supplement and the Canada and Quebec Pension Plans) and the historic rise in the labour force participation of women, who thereby become eligible for pensions in their own right from the Canada and Quebec Pension Plans and employer-sponsored plans....
However, the work is not finished: Some seniors remain in poverty....
The report particularly cites single elderly women and single elderly men, with single elderly women having a much higher rate. So that is an issue.
Even since then we have seen more seniors face very difficult times in this country. We need to have a national anti-poverty plan that includes seniors. One would think that was self-evident. The human resources committee, under the distinguished leadership of the member for Niagara West—Glanbrook, who has worked very hard, and other members in the House today, has proceeded on that work.
On Monday of this week we got word that, in the periodic review of the Human Rights Council of the UN, Canada was asked to look at certain things in terms of making life better for its citizens. One of the key recommendations was recommendation 17, which stated that the Government of Canada should have an anti-poverty strategy. Amazingly, the response to that from the Government of Canada was this:
Canada does not accept recommendation 17 or the related recommendation from Ghana to develop a national strategy to eliminate poverty. Provinces and territories have jurisdiction in this area of social policy and have developed their own programs to address poverty. For example, four provinces have implemented poverty reduction strategies.
There are now six provinces that have poverty reduction strategies. Quebec has always been a leader in terms of progressive social policies. The province of Newfoundland and Labrador, long before it had money rolling in, decided it would have an anti-poverty strategy. There was a meeting with the minister at that time, Shawn Skinner, who outlined some of the stuff that the province of Newfoundland and Labrador was doing.
Ontario, under the distinguished leadership of Deb Matthews, has an anti-poverty strategy. Manitoba now has one. Nova Scotia has one, and although I do not think it is particularly robust, it is at least a good start. The province of New Brunswick has one on the way as well.
One thing that all those provinces have in common when they talk about poverty is that the federal government has to come to the table. At this point in time--